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Informist, Monday, Nov. 10, 2025

 

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--Vodafone Idea Jul-Sept consol net loss INR 55.24 bln 
--Analysts saw Vodafone Idea Jul-Sept consol net loss at INR 67.80 bln 
--Vodafone Idea Jul-Sept consol revenue INR 111.95 bln 
--Analysts saw Vodafone Idea Jul-Sept consol revenue at INR 111.32 bln 
--Vodafone Idea Q2 consol loss INR 55.24 bln vs INR 66.08 bln loss qtr ago 
--Vodafone Idea Q2 consol revenue INR 111.95 bln vs INR 110.23 bln qtr ago 
--Vodafone Idea H1 consol loss INR 121.32 bln vs INR 136.08 bln loss yr ago 
--Vodafone Idea H1 consol revenue INR 222.17 bln vs INR 214.41 bln year ago 
--Vodafone Idea Q2 consol finance costs INR 47.8 bln vs INR 58.9 bln qtr ago 
--Vodafone Idea Q2 consol reported EBITDA INR 46.9 bln vs INR 45.5 bln yr ago 
--Vodafone Idea Q2 consol reported EBITDA margin 41.9% vs 41.6% year ago 
--Vodafone Idea Jul-Sept ARPU INR 180 vs INR 166 year ago 
--Vodafone Idea Jul-Sept capex INR 17.5 bln; Apr-Sept capex at INR 42 bln 
--Vodafone Idea: Debt from banks INR 15.30 bln as on Sept 30 
--Vodafone Idea: Cash and bank balance at INR 30.80 bln as of Sept 30 
--Vodafone Idea 4G, 5G subscriber base 127.8 mln Sept 30 vs 125.9 mln yr ago 
--Vodafone Idea Jul-Sept ARPU at INR 180 vs INR 177 qtr ago 
--Vodafone Idea: Co's 5G services available in 29 cities as on Monday

 

By Arya S. Biju

 

MUMBAI – Vodafone Idea Ltd. reported better-than-expected financial performance for the September quarter, with top line beating Street's estimate and net loss coming in lower than expected. The debt-ridden telecommunications major's consolidated net loss narrowed both on a year-on-year and sequential basis supported by higher average revenue per user and a double-digit fall in finance costs. This marks the 29th consecutive quarter that the company has reported a net loss.

 

The company reported a consolidated net loss of INR 55.24 billion for the reporting quarter, lower than the INR 66.08 billion net loss reported in the preceding quarter and INR 71.76 billion net loss reported in the corresponding quarter a year ago. Analysts had expected the company to report a consolidated net loss of INR 67.80 billion for the September quarter.

 

The company's consolidated net sales for the quarter rose around 2% on quarter and over 2% on year to INR 111.95 billion. This was also higher than the INR 111.32 billion estimated by the Street. 

 

Vodafone Idea's total expenses for the reporting quarter fell over 5% sequentially and over 8% on year to INR 168.62 billion. This was primarily because of a near 19% sequential decline in finance costs, which accounted for 28% of its total costs, to INR 47.84 billion. Its expenses related to depreciation and amortisation, which account for 33% of its total costs, rose just 2% on quarter to INR 55.68 billion.

 

The company's network expense and information technology outsourcing costs for the quarter rose around 1% sequentially to INR 23.63 billion. On the other hand, expenses related to marketing, content, customer acquisition and service costs fell around 1% sequentially to INR 11.77 billion. The company also had a one-time income of INR 376 million for the quarter, on the reversal of accrued costs related to integration and merger. 

 

The company's blended average revenue per user for the September quarter was INR 167, up from INR 165 in the previous quarter and INR 156 in the year-ago quarter. Its customer average revenue per user for the reporting quarter, excluding machine-to-machine services, grew over 8% on year and around 2% on quarter to INR 180. This was supported primarily by customer upgrades and tariff increase, Vodafone Idea said in a press release.

 

The company said it lost 1 million subscribers during the September quarter, taking its total customer base to 196.70 million. This was higher than the 500,000 subscribers lost in the June quarter. However, according to the data compiled from the Telecom Regulatory Authority of India, the company is expected to have lost around 1.41 million subscribers in the September quarter. Its blended churn rate increased sequentially to 4.3% from 4.1%.  

 

The company's consolidated earnings before interest, tax, depreciation and amortisation for the September quarter was INR 46.85 billion, up around 2% sequentially and around 3% on year. This was also higher than the INR 46.49 billion estimated by the Street. Its EBITDA margin for the quarter improved 10 basis points sequentially and 30 bps on year to 41.9%.

 

Of the 196.7 million subscribers, around 65% are fourth-generation or fifth-generation subscribers and the balance 35% are voice-only customers, Vodafone Idea said. As of Sept. 30, the company had 127.8 million fourth-generation or fifth-generation subscribers, higher than 127.4 million at the end of the preceding quarter and 125.9 million in the corresponding quarter a year ago. The company's fifth-generation services are now available in 29 cities, Vodafone Idea said in a post-earnings quarterly update, adding that it will continue to expand it to more cities based on customer demand and fifth-generation supported mobile penetration.

 

The company's fourth-generation population coverage, however, remained largely unchanged on a sequential basis at around 84% as of Sept. 30. Along with fifth-generation network rollout, the company continues to invest in expanding its high-speed broadband network by adding new fourth-generation sites and upgrading its core and transmission network for high-speed broadband network, it said.

 

The company incurred capital expenditure of INR 17.50 billion during the September quarter. Its capital expenditure for the six months ended September was INR 42.00 billion. During the reporting quarter, it added over 1,500 new unique fourth-generation network towers. "With our planned investments, the 4G population coverage is expected to increase to (around) 90% of the population," Vodafone Idea added. The company also said that it plans to deploy 12 million smart metering solutions in the next three years.

The company further reduced its debt from banks to INR 15.30 billion as of Sept. 30, from INR 19.3 billion as of Jun. 30. Its cash and bank balance was INR 30.80 billion as of Sept. 30, down from INR 68.30 billion as of Jun. 30.

 

For the six months ended September, the company reported a consolidated net loss of INR 121.32 billion compared to a net loss of INR 136.08 billion reported in the corresponding quarter a year ago. Its consolidated revenue for Apr-Sept rose nearly 4% on year to INR 222.17 billion.

 

On the company's petition seeking quashing of the Department of Telecommunications' additional adjusted gross revenue demand of INR 94.50 billion till FY19, Vodafone Idea said it welcomes the Supreme Court's order allowing the government to reconsider and reconcile all adjusted gross revenue dues of the company till 2016-17 (Apr-Mar), including penalty and interests. The company is currently in discussion with the telecom department for next steps on this matter, it said in the press release.

 

In a separate notice, Vodafone Idea said its board has approved an investment of INR 43.3 million in a special purpose vehicle to be incorporated for the purpose of owning and operating a captive power plant, by subscribing to 26% stake in it. The special purpose vehicle is expected to be incorporated by Shree MTK Textile Pvt. Ltd., wherein the latter will be the holding company.

 

Vodafone Idea announced its September quarter earnings post-market hours Monday. Ahead of the earnings announcement, shares of the company closed the day's session over 1% lower at INR 9.50 on the National Stock Exchange.  End

 

Edited by Ashish Shirke

 

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